Nifty ends at 7701, Sensex up 170 points; HUL, Reliance gain

15 December 2015

3:30 pm Market closing: The market ended higher ahead of Fed meet. The Sensex is up 170.09 points or 0.7 percent at 25320.44, and the Nifty up 50.85 points or 0.7 percent at 7700.90. About 1577 shares have advanced, 1071 shares declined, and 199 shares are unchanged.

HUL, Lupin, Reliance, ONGC and Tata Motors were top gainers while ICICI Bank, Wipro, NTPC, GAIL and Coal India were major losers in the Sensex.

3:15 pm Cheap airfare? In what would be a setback for Delhi International Airport Ltd (DIAL), a unit of GMR Infra , the Airport Economic Regulatory Authority (AERA) has proposed a 96.08 percent cut in airport charges for the Indira Gandhi International (IGI) Airport, something that is typically passed on to passengers. Mint reports that the order comes even as the Delhi airport's operator had proposed to hike airport charges by 42.6 percent for the period between April 1, 2014 and March 31, 2019) and even as DIAL had legally challenged AERA's previous order that had proposed a 78.4 percent reduction in airport charges for the abovementioned period. Airport charges, levied to finance capital expenditure and pay for maintenance, are set for five-year durations called a control period.

3:05 pm Market check: The Sensex is up 187.96 points or 0.7 percent at 25338.31, and the Nifty up 52.85 points or 0.7 percent at 7702.90. About 1545 shares have advanced, 1028 shares declined, and 204 shares are unchanged.

3:00 pm Market Update: Equity benchmarks extended upmove in last hour trade. The Sensex rose 161.56 points or 0.64 percent to 25311.91 and the Nifty went up 42.10 points or 0.55 percent to 7692.15.

About 1542 shares have advanced, 1029 shares declined, and 195 shares are unchanged on the BSE.

2:50 pm SEBI on primary market: Attributing better performance of recent IPOs to easier norms, Sebi Chairman U K Sinha today said retail investors may not invest again if they lose money in the primary market.

"If retail investors feel they are continuously losing money in the primary market by subscribing to IPOs, they may not invest again," Sebi Chairman U K Sinha told an investment bankers' summit. Notably, the IPO market has seen a boom this year after a near-drought situation in the past five years.

Companies like, InterGlobe, CCD, Alkem and Dr LalPath Labs, among others got tremendous response to their issues this year. While most of the new issues of the past many years have been trading below the issue price, 56 percent of the IPOs this year are trading above the issue price.

2:35 pm Can oil prices rebound?: Even with a global glut in oil supplies set to last well into 2017, indications are emerging that a recovery in prices could get underway sooner rather than later.

Oil prices have fallen by two-thirds since mid-2014 to trade near 11-year lows below USD 40 a barrel and most analysts don't expect them to regain the USD 100 mark until 2017 or later, arguing that producers will continue to pump out more crude than is demanded.

A growing number of traders are, nonetheless, positioning themselves for notably higher prices a year from now through the purchase of bullish call options.

Open interest in Brent crude call options tied to strike prices from USD 50 to USD 80 per barrel has climbed steeply in recent weeks, indicating growing confidence that prices will stage a strong recovery from current levels.

Factors supporting a more positive outlook range from higher car sales to heightened security and political risks in some oil producers and debt-laden shale firms on their last legs.

The market is extremely flat as the Sensex is up 9.77 points at 25160.12. The Nifty is down 2.40 points at 7647.65. About 1338 shares have advanced, 1046 shares declined, and 171 shares are unchanged.

HUL, ONGC, Sun Pharma, Lupin and Reliance are top gainers while ICICI Bank, Vedanta, BHEL, NTPC and Wipro are losers in the Sensex.

Volatility in rupee continued as it pared early gains to rule almost flat, marginally up by one paise to 67.08, in late morning deals on demand from banks and exporters amid heightened uncertainties of US rate hike.

Earlier, the domestic unit opened higher at 67.03 against yesterday's 27-month low of 67.09 at the Interbank Foreign Exchange Market. It appreciated further on dollar selling from banks to scale-back to 66.96 before quoting at 67.08 at 1030 hrs.

The rupee hovered between 67.09 and 66.96 during morning trade. Overseas, the US dollar was little changed against the basket currencies in early trade, as crude oil and equity prices took a breather after a recent slide.

About 1340 shares have advanced, 1036 shares declined, and 156 shares are unchanged on the BSE.

12:45 pm Drug approval: Natco Pharma has received approval from the Drugs Controller General of India (DCGI) to launch generic version of Gilead Sciences' hepatitis C treatment drug in India.

''The company has received approval for the generic version of ledipasvir + sofosbuvir combination from Drugs Controller General (India)'', Natco Pharma said in a BSE filing today.

Natco Pharma plans to launch this combination drug immediately, under its brand name Hepcinat LP and through its strategic partners in India, it said.

Ledipasvir+Sofosbuvir is a two-drug fixed-dose combination product that contains 90 mg of ledipasvir and 400 mg of sofosbuvir in a single tablet, and sold globally by Gilead Sciences, Inc. under its brand Harvoni.

It is indicated for the treatment of chronic hepatitis C (CHC) genotype 1 infection in adults.

The National Stock Exchange has transferred the stock from trade for trade segment to rolling segment today after keeping it in trade for trade segment for 11 trading sessions, which resulted change in circuit limit to 20 percent from 5 percent earlier.

It reported revenue CAGR of 22 percent and net profit of 54 percent during the FY10-15.

12:15 pm Rupee Update: Volatility in rupee continued as it pared early gains to rule almost flat, marginally up by one paise to 67.08 on demand from banks and exporters amid heightened uncertainties of US rate hike.

Earlier, the domestic unit opened higher at 67.03 against yesterday's 27-month low of 67.09 at the Interbank Foreign Exchange Market. It appreciated further on dollar selling from banks to scale-back to 66.96 before quoting at 67.08 at 1030 hrs.

The rupee hovered between 67.09 and 66.96 during morning trade. Overseas, the US dollar was little changed against the basket currencies in early trade, as crude oil and equity prices took a breather after a recent slide.

The 30-share BSE Sensex rose 32.01 points to 25182.36 and the 50-share NSE Nifty advanced 5.05 points to 7655.10. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 0.2-0.4 percent.

The market breadth remained strong as about 1315 shares advanced against 934 declining shares on the Bombay Stock Exchange.

In its last policy meeting of the year that kicks off later today, the Federal Reserve is widely expected to hike US interest rates for the first time since June 2006.

The US central bank is expected to raise rates by a quarter of a percentage point at the end of its two-day meeting on Wednesday.

11:45 am SEBI news: In a major crackdown on PACL, capital markets regulator Sebi has attached all assets of the company and its nine promoters and directors for their failure to refund more than Rs 60,000 crore due to investors - the biggest illegal mobilisation of funds. PACL had raised Rs 49,100 crore from nearly 5 crore investors that it needs to refund along with promised returns, interest payout and other charges, which take the total amount due to more than Rs 55,000 crore, Sebi said on Monday. Besides, PACL has another group firm PGFL which has "illegally mobilised more than Rs 5,000 crore and failed to refund the same in spite of directions of Sebi and SAT", the regulator said while initiating the recovery proceedings.

11:30 am FII view: Atsi Sheth, Associate Managing Director - Sovereign Risk Group, Moody's Investors Service, says India's fiscal position has been vulnerable to one-off events and the implementation of the Seventh Pay Commission might pose a challenge in meeting the current fiscal deficit targets. The longer term view on India is constrained by food inflation, which has been a key driver of the consumer price index (CPI) along with supply side pressures, Sheth says, adding there's a risk of monetary policy not being able to control food inflation.

The market is still under pressure as all eyes are on the FOMC tonight. The Sensex is down 20.34 points at 25130 and the Nifty is down 12.80 points at 7637.25. About 1221 shares have advanced, 812 shares declined, and 133 shares are unchanged.

Reliance, HUL, ONGC, Sun Pharma and Axis Bank are top gainers while ICICI Bank, Tata Motors, Wipro, BHEL and Hindalco are losers in the Sensex.

Gold is hit from overnight losses on Tuesday and the metal looked vulnerable to a drop back to multi-year lows on expectations of a US rate hike later this week.

The Federal Reserve will kick off its last policy meet of the year later on Tuesday. At the end of the two-day meet, the US central bank is widely expected to hike interest rates for the first time since June 2006.

Higher rates are expected to hurt demand for non-interest-paying bullion, while boosting the dollar. Gold has already slid 10 percent for the year, its third straight annual decline, in anticipation of higher rates.

The sale of 'The Leela, Goa' has been completed on December 14, 2015, Hotel Leelaventure said in a filing to BSE.

"The shareholding of the company shall remain unaffected pursuant to the aforesaid sale," it added.

The company had earlier in September this year had announced entering into a pact with Malaysia-based MetTube to sell the Goa property for a consideration of Rs 725 crore as part of its debt restructuring process.

10:30 am Gold Update: Gold was hurting from overnight losses today and the metal looked vulnerable to a drop back to multi-year lows on expectations of a US rate hike later this week.

The Federal Reserve will kick off its last policy meet of the year later on Tuesday. At the end of the two-day meet, the US central bank is widely expected to hike interest rates for the first time since June 2006.

Higher rates are expected to hurt demand for non-interest-paying bullion, while boosting the dollar. Gold has already slid 10 percent for the year, its third straight annual decline, in anticipation of higher rates.

10:15 am FII View: Ridham Desai, Morgan Stanley says he is looking for a turn in earnings, more policy action, revival in consumption and continuing domestic flows into equities in 2016.

His portfolio approach is to keep wide sector positions with a GARP (growth at a reasonable price)-oriented stock picking strategy.

10:00 am Market CheckEquity benchmarks continued to consolidate in morning trade ahead of Federal Reserve's two-day policy meeting tonight. Analysts expect Fed to hike interest rates by 25 basis points, which will be the first hike in last seven years.

The Sensex fell 39.08 points to 25111.27 and the Nifty declined 12.55 points to 7637.50. The broader markets marginally outperformed benchmarks. The market breadth was positive as about 1087 shares advanced against 764 declining shares on the BSE.

Already various car makers including Maruti Suzuki India, Hyundai Motor India, Toyota, General Motors India and German luxury car makers Mercedes Benz and BMW have announced a hike in prices of their vehicles across models from January to offset rising input costs.

9:45 am Buzzing: Shares of Adani Enterprises gained 7 percent in early trade after the Australian court has dismissed Green Group's challenge to Adani Coalmine.

The rally in stock is on hope that USD 15 billion Carmichael coal mine may get clearance for mining. This project is stuck since 2010 for want of green nod.

Adani group recently requested the Australian government to draft a special law prohibiting Green Group's from seeking repeated judicial reviews of environmental approvals.

9:30 am FII view on Fed: A likely interest rate hike in the US, the first in nearly a decade, will be withstood well by equity markets in India, says Xavier Denis, Economist-Strategist at Société Générale Private Banking. In an interview with CNBC-TV18, Denis said a hike by the Fed, which starts its two-day rate-setting meeting today, will send a strong statement about the strength of the US economy, though he added that he would be wary of one market in the wake of a hike: the US high yield. "You have weakness in the commodity markets, especially oil, which could have a domino effect on energy companies [and their debt standing]," he said.

The market has opened flat. The Sensex is up 22.40 points or at 25172.75 and the Nifty is up 9.35 points at 7659.40. About 321 shares have advanced, 110 shares declined, and 34 shares are unchanged.

Sun Pharma, Hindalco, Tata Steel, Coal India and Maruti are top gainers while Cipla, ICICI Bank, ITC, HDFC Bank and Tata Motors are down in the Sensex.

The Indian rupee bounced back morning after hitting lowest closing level since September 3, 2013 in previous session. The currency has opened at 67.03 a dollar against 67.09 per dollar on Monday.

Ashutosh Raina, HDFC Bank feels the Fed rate hike is almost a certainty, but the market will be keenly watching the statement to get an idea about the pace of future hikes.

He says the USD-INR pair has been under pressure breaching the Rs 67/USD figure decisively, and is expected to trade weak ahead of FOMC meet.

Asian shares steadied in cautious early trade, as investors were reluctant to make any big moves amid volatile crude oil and before a widely anticipated US interest rate increase by the Federal Reserve later this week.

Markets were also focused on whether the People's Bank of China (PBOC) would continue to guide its currency lower, with traders wary about the central bank's intentions after it set the yuan/dollar official midpoint at 4-1/2-year lows in recent session.

Besides the direction of oil prices, the outlook for Fed monetary policy loomed large in the markets' collective consciousness. Investors have mostly priced in a rate hike this week, with the main question now hinging on how many increases will follow next year.